MANILA, Philippines — The Department of Transportation (DOTr) will bid out the contract for the feasibility study of the proposed freight railway between Subic and Batangas before the end of the year.
Philippine National Railways (PNR) chairman Michael Macapagal told The STAR that the DOTr would look for a consultant to evaluate the viability of the Subic-Clark-Manila-Batangas Railway toward the end of 2024.
“The bidding for that project (feasibility study of the railway) is scheduled for the last quarter of the year,” Macapagal said.
The DOTr will source the funding for the feasibility study from the $6 million provided by the Asian Development Bank (ADB). In 2023, the DOTr obtained that amount from the ADB for the conduct of feasibility studies on several rail projects.
Macapagal said the DOTr wants to do the feasibility study for the Subic to Batangas rail because of the potential of the project to improve logistics flow. He also noted that traditional allies like the US and Japan are backing the Philippines in pursuing this project.
The railway serves as the flagship project under the Luzon Economic Corridor, an initiative that the Philippines will undertake with the help of Japan and the US.
In its entirety, the railway will run for roughly 250 kilometers along some of the economic hubs in Luzon, particularly Subic Bay, Clark, Metro Manila and Batangas.
The project, once completed, will speed up the flow of logistics activities in the island, leading to a reduction in transport costs and commodity prices to the benefit of consumers.
Last month, Trade Secretary Alfredo Pascual said the government hopes to finish the design by 2026 and start construction by 2027. Initial estimates from the government show that the railway could cost as much as $3.2 billion.
Apart from this, the DOTr is searching for consultants who would draw up the feasibility studies for railways in Visayas. In May, the DOTr said it will spend P78.6 million each for the conduct of feasibility studies for the Panay Railway and the Samar-Leyte Railway.
For the Panay Railway, the goal is to revive its decommissioned line extending for more than 117 kilometers and which was shut in 1983 because of mounting losses.
Meanwhile, the Samar-Leyte Railway is estimated to cost P10 billion and will put up a rail line linking the provinces in Eastern Visayas.